GST Rates Slashed On Over 200 Items: What Has Gone Cheaper

The Council at its 23rd meeting in Guwahati on Friday reduced the tax rate on over 200 items

The GST Council on Friday in the biggest tax overhaul slashed tax rates on over 200 items, ranging from chewing gum to chocolates, to beauty products to wrist watches to provide relief to consumers and businesses. As many as 178 items of daily use were shifted from the top tax bracket of 28 per cent to 18 per cent. After these changes, only 50 items will attract GST rate of 28 per cent. Tax on two items was cut from 28 per cent to 12 per cent while on six items was reduced from 18 per cent to 5 per cent. On eight items, tax was reduced from 12 per cent to 5 per cent and on six items from 5 per cent to nil.

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Another big change, all restaurants will now be levied GST at 5 per cent, without input tax credit (ITC) benefits. Click here to know more on how eating out may get cheaper.

However five-star restaurants within starred-hotels with room rent above Rs. 7,500 will attract 18 per cent and can still avail ITC benefits, the council said. Outdoor catering will attract 18 per cent GST with input tax credit benefits.

GST rates on aircraft engines was cut from 28 per cent/18 per cent to 5 per cent, aircraft tyres from 28 per cent to 5 per cent and aircraft seats from 28 per cent to 5 per cent. also GST rate on bangles of lac/shellac from 3 per cent GST rate to Nil.